A year of good progress, matching expectations

Norcros’ FY26 outcome is in-line with market forecasts despite challenging underlying conditions. Gains came from UK progress, FIBO acquisition and tight control of South African operations. Strong cash generation was another pleasing feature.

Key financial metrics are revenues +10% at £393m, PBT of £40.4m slightly ahead of expectations, and net debt £8m better than anticipated at £67m. Underlying revenues were modestly ahead y-o-y in both UK/Ireland and South Africa as pricing/mix more than offset lower volumes.

FIBO (acquired in Oct ‘25) has performed as expected, supported by a strong manufacturing base. At a Group level we expect benefits to come from greater connectivity across channels, product development, and distribution.

Norcros shares have declined c. 20% since the end of February: this decline seems disproportionate given no direct impact to trading apparent from conflict in the Middle East. Our estimates and fair value of 397p/share are unchanged.